Dear Seniors,
At present, we have fixed the basic salary at 60%, and in October 2022, we increased the salaries of the employees. However, in the case of one of our employees, we made a mistake and increased his basic salary by 70% instead of 60%. We also paid his EPF contribution as per the increased basic pay. So I want to know, can we reduce his salary from 70% to 60% now? If yes, then can the Employees Provident Fund Department have any objection to this?
Please guide on what we can do in this matter.
Thank You
From India, Patiala
1At present, we have fixed the basic salary at 60%, and in October 2022, we increased the salaries of the employees. However, in the case of one of our employees, we made a mistake and increased his basic salary by 70% instead of 60%. We also paid his EPF contribution as per the increased basic pay. So I want to know, can we reduce his salary from 70% to 60% now? If yes, then can the Employees Provident Fund Department have any objection to this?
Please guide on what we can do in this matter.
Thank You
From India, Patiala
Without knowing what the amounts of your basic salaries constitute, we are unable to give a reply. If your 70% of salary, i.e., PF qualifying salary, is less than or equal to Rs 15,000, then you cannot reduce it to 60%. At the same time, if this 70% is already above Rs 15,000, you can reduce it to Rs 15,000 and start contributing PF on that basic, i.e., Rs 15,000. Please revert.
From India, Kannur
From India, Kannur
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